Have you received 1099-B form your brokerage for the sale of your stocks and other investments?
brokerage and other financial institutions are required to send you a 1099-B form if you have sold shares or other investments in your account. They must also send copies of the forms to the IRS.
The IRS matches the information on the forms they receive from the brokerage to the amounts you report on your tax return. If information is missing, you will receive a letter with a correction of the IRS.
Make sure your financial institutions can find you
You should receive statements of each year-end brokerage or other financial institution at the end of January, or some days later, if the mail is slow.
It is yours to make sure you have received all your statements. Most of us remember to update our address with creditors who send the bills every month, but it is easy to have financial institutions lose track of our places when we travel.
Another reason to make sure your bank or brokerage has your current address is that you do not want your account to finish the unclaimed list, which could be submitted to your state
form 1099-B - standard and in disguise !; Not to be confused
Some companies use IRS Form 1099-B.
However, they are allowed to use their own version of the form, which may seem quite different. Do not be confused.
The figures and descriptions of the box on the form should be labeled to match the entries you make in TaxACT, regardless of the form looks like.
New Form 1099-B reporting rules
In the past, brokerage firms reported sales your products to you and the IRS.
However, you were instructed to keep track of what you have paid for the shares and mutual fund investments. you
for 2012, brokerage firms are required to report the cost or other basis of shares sold for titles "covered" - mainly securities that you bought after 1 January 2012.
This makes tax season easier, because you do not have to dig through old statements to find your cost basis yourself.
IRS loves the new report, of course, because they are more confident that taxpayers are reporting the correct database.
Even brokers must enjoy making calls less phone clients and their accountants, frantically ask the basic cost of shares at the last minute.
What actions I bought before 1 January 2012?
You still have to find folders for investments purchased before 2012, regardless of when you sell them.
If you sell a group of actions, some of which you bought after January 1st, 2012, your brokerage reported the actions covered and uncovered on different lines on the 1099-B Form.
what if I do not like the way my brokerage used to determine what actions I sold?
If you sell a part of a group of shares; For example, if you sell half of the 100 shares of a mutual fund you bought at different times, you can have your brokerage use one of several methods to determine the shares you sold.
However, you must make these instructions in advance for covered securities. You can not determine later when you do your tax return whose shares you sold.
Ask your broker how to make a written choice to change the method you want to use in the future.
Are the recent changes in the tax treatment of dividends change the way you invest
photo credit: Mike Czumak via photopin cc
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